Forex is used in daily trading of goods and exports. With globalization, money is transferred or exchanged into other currency for payment and receivables. Out of all the major player, there is 1 type of investment in forex that gain profit and this group of profiteers are forex trader. This is a similar class as a stock and share trader except the purchase is currency instead of the company shares.Why Forex?
My main reason for writing this is to show the automated Forex trading. But before I touch on automation, I need to explain why Forex is chosen. Trading can be performed 24 hours a day (vs stocks which is 8 to 5 usually) and can perform sell trade. Most investment instruments can only buy first then sell. For Forex trading. It can do sell first then buy. Unlike many other stock exchange in the world, shares have to have a buyer and a seller then the shares can change hands. For Forex, since it is largely connects into a pool of currency demand and supply, you can almost instantly buy without having to wait for seller. Most important of all is that it wont bankrupt, reach zero value or translate into worthless paper. Because you are using currency to buy currency and that it self is the assets you be holding.
How to profit from ForexBefore automation is possible, likewise for stock trader, foreign exchange are traded manually by trader. Currency are buy and sell with human involvement. The price will raise and fall. The main aim is to profit by buying low and selling high. Basic mathematics applies. But with the turn of the century comes computing and programming, this change and evolve investment. This includes traders in the foreign exchange community.
Automated Passive Income
With automation of the trading strategy which execute trades for you according to your programs. Steams of passive income is made possible using MT4 trading platform. Expert advisor are program that run on your
computer which trades for you automatically. You only need to setup a trading account and run your Expert Advisor program to enable passive income. Personally I have use it to achieve monthly income without having to look at trading chart all the time. But I still manual trade when I see some news that will leak to drastically drop in currency price.
Can this be sustainable in the long run?
Definitely you still need to monitor every now and then. Pick up those bad trades and add in new profitable strategy. Some trading strategies are especially profitable in trending market or sideways market. While others are reversal and martingale trading. And lately popular ones are scalping strategy. Be side monitoring your programFeature Articles, you need to keep in mind money management and margin call. Always keep enough capital for draw down (strategy maximum drawdown) and your margin required for trades (trading account leverage). As a recommendation always use 10% of your capital to buy and hold margin for your Forex trades.
I wrote many articles on the different strategy and have created many Expert Advisors using combination of different trading strategies. Refer to my website for more information.
Source http://www.articlesfactory.com/articles/finance/best-forex-automated-trading-robot.html
A practical guide to trading the foreign exchange marketThe Ed Ponsi Forex Playbook offers a visual approach to learning specific trading strategies and identifying profitable trading opportunities in the Forex arena. Page by page, it skillfully describes strategies for long-term trading, swing trading, and day trading in a clear, easy-to-understand manner.
Written by the author of the hugely successful Forex Patterns and Probabilities, The Ed Ponsi Forex Playbook takes the entire concept of Forex education to a new level. The author raises the bar with this ambitious work, presenting fresh new strategies and concepts. Ponsi uses clever analogies and comparisons to make his explanations crystal clear.
- With Ponsi as your "coach", the book employs sports analogies to show you, his players, the way to victory on the Forex playing field
- Strips away the mystery, showing exactly how successful Forex traders make money
- Explains complex financial concepts in ways that the average person can understand
- Provides not only useful information, but actionable information to the Forex trader
Editorial Reviews
From the Back Cover
Praise for The Ed Ponsi Forex Playbook"The Ed Ponsi Forex Playbook
contains both the offensive and defensive plays that will keep traders
profitable and safe. Those who pick up this fascinating read will not
put it down until they have finished."
—Steve H. Hanke, Professor of Applied Economics, The Johns Hopkins University
"Ed covers all of the bases in this book. It's powerful, practical, and profitable advice that you can use right now. From start to finish, the book is packed with information that can help any trader extract profits from the most exciting market in the world."
—Rob Booker, independent trader, author of Adventures of a Currency Trader
"Ed Ponsi has scored again! This book doesn't just teach you how to win the trading game; it shows you how to win big. If you want to bank consistent profits in the forex market, read this book from cover to cover."
—Mario Singh, CEO, FX1 Academy
"Exceptionally unique and useful to traders of all skill levels, this book is a wealth of actionable trading approaches from one of the giants in forex education and analysis."
—James Chen, CTA, CMT, Chief Technical Strategist at FX Solutions, author of Essentials of Foreign Exchange Trading (Wiley)
An easy-to-understand visual guide to trading the foreign exchange market
Written by the author of the hugely successful Forex Patterns and Probabilities, The Ed Ponsi Forex Playbook offers a visual approach to learning successful trading strategies and identifying profitable trading opportunities in the Forex arena.
In Part I, "Training Camp," Ponsi provides basic but vital information to lay the groundwork for your success. In the next part, "Scoring Points," he delves into more advanced trading concepts. Part III, "Winning the Championship," deals with specific techniques that will give your trading an edge. Part IV, "Commitment to Excellence," presents more advanced money-making trading concepts, and in the final section, "Staying in Shape," you will learn which situations to avoid in order to enjoy a long and successful trading career.
The foreign exchange market is the most actively traded market in the world, and Ed Ponsi is world-renowned as one of the foremost educators in this field.
—Steve H. Hanke, Professor of Applied Economics, The Johns Hopkins University
"Ed covers all of the bases in this book. It's powerful, practical, and profitable advice that you can use right now. From start to finish, the book is packed with information that can help any trader extract profits from the most exciting market in the world."
—Rob Booker, independent trader, author of Adventures of a Currency Trader
"Ed Ponsi has scored again! This book doesn't just teach you how to win the trading game; it shows you how to win big. If you want to bank consistent profits in the forex market, read this book from cover to cover."
—Mario Singh, CEO, FX1 Academy
"Exceptionally unique and useful to traders of all skill levels, this book is a wealth of actionable trading approaches from one of the giants in forex education and analysis."
—James Chen, CTA, CMT, Chief Technical Strategist at FX Solutions, author of Essentials of Foreign Exchange Trading (Wiley)
An easy-to-understand visual guide to trading the foreign exchange market
Written by the author of the hugely successful Forex Patterns and Probabilities, The Ed Ponsi Forex Playbook offers a visual approach to learning successful trading strategies and identifying profitable trading opportunities in the Forex arena.
In Part I, "Training Camp," Ponsi provides basic but vital information to lay the groundwork for your success. In the next part, "Scoring Points," he delves into more advanced trading concepts. Part III, "Winning the Championship," deals with specific techniques that will give your trading an edge. Part IV, "Commitment to Excellence," presents more advanced money-making trading concepts, and in the final section, "Staying in Shape," you will learn which situations to avoid in order to enjoy a long and successful trading career.
The foreign exchange market is the most actively traded market in the world, and Ed Ponsi is world-renowned as one of the foremost educators in this field.
About the Author
Ed Ponsi is the President of FXEducator.com. As an experienced professional trader, he has advised hedge funds, institutional traders, and individuals of all levels of skill and experience. Ponsi has made numerous television appearances on CNBC, Bloomberg, CNN, the BBC, Fox Business News, and ForexTV, and has been profiled in magazines such as Technical Analysis of Stocks and Commodities and Traders Journal. His dynamic and humorous style sets him apart from the "suit and tie crowd." Ponsi is also the author of Forex Patterns and Probabilities (Wiley), a top-selling book on currency trading, and has a popular DVD series, FXEducator: Forex Trading with Ed Ponsi.
A practical guide to profiting from institutional trading trends
The
key to being a successful trader is finding a system that works and
sticking with it. Author Al Brooks has done just that. By simplifying
his trading system and trading only 5-minute price charts he's found a
way to capture profits regardless of market direction or economic
climate. His first book, Reading Price Charts Bar by Bar, offered
an informative examination of his system, but it didn't allow him to
get into the real nuts and bolts of the approach. Now, with this new
series of books, Brooks takes you step by step through the entire
process.
By breaking down his trading system into its simplest
pieces: institutional piggybacking or trend trading (the topic of this
particular book in the series), trading ranges, and transitions or
reversals, this three book series offers access to Brooks' successful
methodology. Price Action Trends Bar by Bar describes in detail
what individual bars and combinations of bars can tell a trader about
what institutions are doing. This is critical because the key to making
money in trading is to piggyback institutions and you cannot do that
unless you understand what the charts are telling you about their
behavior. This book will allow you to see what type of trend is
unfolding, so can use techniques that are specific to that type of trend
to place the right trades.
- Discusses how to profit from institutional trading trends using technical analysis
- Outlines a detailed and original trading approach developed over the author's successful career as an independent trader
- Other books in the series include Price Action Trading Ranges Bar by Bar and Price Action Reversals Bar by Bar
From the Inside Flap
The key to being a successful trader is finding a system that works
and sticking with it. Author Al Brooks, a technical analysis contributor
to Futures magazine and an independent trader for twenty-five years,
has done just that. Over the course of his career, he's found a way to
capture consistent profits regardless of market direction or economic
climate. And now, with his new three-book series—which focuses on howto
use price action to trade the markets—Brooks takes you step by step
through the entire process.
In order to put his methodology in
perspective,Brooks examines an essential array of price action basics
and trends in this initialbook; moves on to provide important insights
on trading ranges, order management, and the mathematics of trading in
the next book, Trading Price Action TRADING RANGES; and then
discusses trend reversals, day trading, daily charts, options, and the
best setups for all time frames in the third, and final, book of this
series, Trading Price Action REVERSALS.
Written with the serious trader in mind, Trading Price Action TRENDS skillfully addresses how understanding price action and effectively reading price charts, bar by bar, can help you follow unfolding patterns, which are all initiated by institutions, helping you to profitably piggyback onto their trades by setting up early entries with tight stops. Engaging and informative, this reliable guide:
Trading is a rewarding endeavor, but it's hard work and requires relentless discipline. To succeed,you have to stick to your rules and avoid emotion—and you have to patiently wait to take only the best trades. Trading Price Action TRENDS is your first step in achieving this goal. With this guide, and the other two books in the series, you'll discover how to develop the patience and discipline to follow a sound system, and reap potentially huge financial rewards in the process.
Written with the serious trader in mind, Trading Price Action TRENDS skillfully addresses how understanding price action and effectively reading price charts, bar by bar, can help you follow unfolding patterns, which are all initiated by institutions, helping you to profitably piggyback onto their trades by setting up early entries with tight stops. Engaging and informative, this reliable guide:
- Discusses how to trade trends, trading ranges, breakouts, and reversals
- Examines the basic tools of trend lines and trend channels, which can be used to highlight the existence of trends and trading ranges
- Provides a detailed description of the significance of each type of candle, as well as the mathematics that traders need to know when placing trades
- And much more
Trading is a rewarding endeavor, but it's hard work and requires relentless discipline. To succeed,you have to stick to your rules and avoid emotion—and you have to patiently wait to take only the best trades. Trading Price Action TRENDS is your first step in achieving this goal. With this guide, and the other two books in the series, you'll discover how to develop the patience and discipline to follow a sound system, and reap potentially huge financial rewards in the process.
From the Back Cover
"Al Brooks has written a book every day trader should read. On all
levels, he has kept trading simple, straightforward, and approachable.
By teaching traders that there are no rules, just guidelines, he has
allowed basic common sense to once again rule how real traders should
approach the market. This is a must-read for any trader that wants to
learn his own path to success."—Noble DraKoln, founder,
SpeculatorAcademy.com, and author of Trade Like a Pro and Winning the Trading Game
"A
great trader once told me that success was a function of focused
energy. This mantra is proven by Al Brooks, who left a thriving
ophthalmology practice to become a day trader. Al's intense focus on
daily price action has made him a successful trader. A born educator, Al
also is generous with his time, providing detailed explanations on how
he views daily price action and how other traders can implement his
ideas with similar focus and dedication. Al's book is no quick read, but
an in depth roadmap on how he trades today's volatile markets, complete
with detailed strategies, real-life examples, and hard knocks
advice."—Ginger Szala, Publisher and Editorial Director, Futures magazine
Over the course of his career, author Al Brooks, a technical analysis contributor to Futures magazine and an independent trader for more than twenty years, has found a way to capture consistent profits regardless of market direction or economic climate. And now, with his new three-book series—which focuses on how to use price action to trade the markets—Brooks takes you step by step through the entire process.
In order to put his methodology in perspective, Brooks examines an essential array of price action basics and trends in this initial book. Page by page, he skillfully addresses how understanding price action and effectively reading price charts, bar by bar, can help you follow unfolding trends usually initiated by institutions and allow you to profitably piggyback onto their trades by setting up early entries with tight stops.
Throughout the book, Brooks focuses primarily on 5 minute candle charts—all of which are created with TradeStation—to illustrate basic principles, but also discusses daily and weekly charts. And since he trades more than just E-mini S&P 500 futures, Brooks also details how price action can be used as the basis for trading stocks, forex, Treasury Note futures, and options.
Over the course of his career, author Al Brooks, a technical analysis contributor to Futures magazine and an independent trader for more than twenty years, has found a way to capture consistent profits regardless of market direction or economic climate. And now, with his new three-book series—which focuses on how to use price action to trade the markets—Brooks takes you step by step through the entire process.
In order to put his methodology in perspective, Brooks examines an essential array of price action basics and trends in this initial book. Page by page, he skillfully addresses how understanding price action and effectively reading price charts, bar by bar, can help you follow unfolding trends usually initiated by institutions and allow you to profitably piggyback onto their trades by setting up early entries with tight stops.
Throughout the book, Brooks focuses primarily on 5 minute candle charts—all of which are created with TradeStation—to illustrate basic principles, but also discusses daily and weekly charts. And since he trades more than just E-mini S&P 500 futures, Brooks also details how price action can be used as the basis for trading stocks, forex, Treasury Note futures, and options.
About the Author
AL BROOKS is a technical analysis contributor for Futures magazine and an independent day trader. His approach to reading price charts was developed over two decades in which he changed careers from ophthalmology to trading. Brooks graduated from The University of Chicago Pritzker School of Medicine in 1978 and received a BS in mathematics with honors from Trinity College in 1974. His website, brookspriceaction.com, outlines his trading approach and views as well as hosts a subscription-based daily trading chat room in which Brooks talks with other traders about the market.
Trading Price Action Trends: Technical Analysis of Price Charts Bar by Bar for the Serious Trader (Wiley Trading) Click here to read amazon customer reviews and rating...
The foreign-exchange market is often referred to as the Slaughterhouse where novice traders go to get 'chopped up'. It is one of egos and money, where millions of dollars are won and lost every day and phones are routinely thrown across hectic trading desks. This palpable excitement has led to the explosion of the retail FX market, which has unfortunately spawned a new breed of authors and gurus more than happy to provide misleading and often downright fraudulent information by promising traders riches while making forex trading 'easy'.
Well I'll let you in on a little secret: there is nothing easy about trading currencies. If you don't believe me then stop by Warren Buffet's office and ask him how he could lose $850m betting on the dollar or ask George Soros why his short yen bets cost him $600m not once but twice in 1994. What's wrong with these guys, don't they read FX books?
In reality, the average client's trading approach combined with the unscrupulous practices of some brokers make spot FX trading more akin to the games found on the Vegas strip than to anything seen on Wall St. The FX market is littered with the remains of day traders and genius 'systems,' and to survive in the long-run traders have to realize that they are playing a game where the cards are clearly stacked against them.
Have you ever had your stop hit at a price that turned out to be the low/high for the day? Bad luck perhaps? Maybe. What if it happens more than once? Do you ever feel like the market is out to get you? Well guess what, in this Zero Sum game it absolutely is.
Covering the day-to-day mechanics of the FX market and the unsavoury dealings going on, Beat the Forex Dealer offers traders the market-proven trading techniques needed to side-step dealer traps and develop winning trading methods. Learn from an industry insider the truth behind dirty dealer practices including: stop-hunting, price shading, trading against clients and 'no dealing desk' realities.
Detailing the dealer-inspired trading techniques developed by MIGFX Inc, consistently ranked among the world's leading currency trading firms, the book helps turn average traders into winning traders; and in a market with a 90% loss rate winning traders are in fact quite rare! More than just a simple manual, Beat the Forex Dealer brings to life the excitement of the FX market by delivering insights into some of the greatest trading triumphs and highlighting legendary disasters; all written in an easy to read style.
Make no mistake about it there is a lot of money to be made in currency trading, you just have to know where to look. Sidestepping simple dealer traps is one way of improving your daily p&l, but it is surely not the only one. Successful trading comes down to taking care of the details, which means skipping the theoretical stuff and providing only up-to-date, real-life examples while sharing the FX trading tips that have proved so profitable over the years. By stripping away the theory and getting down to the core of trading, you too will find yourself on the way to beating the forex dealer.
Review
"...could help novices avoid much of the pain...a brutall honest
appraisal of how currency markets work." (Investors Chronicle, April
24th 2009)
From the Back Cover
The foreign-exchange market is often referred to as the Slaughterhouse
where novice traders go to get "chopped up". It is one of egos and
money, where millions of dollars are won and lost every day and phones
are routinely thrown across hectic trading desks. This palpable
excitement has led to the explosion of the retail FX market, which has
unfortunately spawned a new breed of authors and gurus more than happy
to provide misleading and often downright fraudulent information by
promising traders riches while making forex trading "easy".
Well I'll let you in on a little secret: there is nothing easy about trading currencies. If you don't believe me then stop by Warren Buffet's office and ask him how he could lose $850m betting on the dollar or ask George Soros why his short yen bets cost him $600m not once but twice in 1994. What's wrong with these guys, don't they read FX books?
In reality, the average client's trading approach combined with the unscrupulous practices of some brokers make spot FX trading more akin to the games found on the Vegas strip than to anything seen on Wall St. The FX market is littered with the remains of day traders and genius "systems" and to survive in the long-run traders have to realize that they are playing a game where the cards are clearly stacked against them.
Have you ever had your stop hit at a price that turned out to be the low/high for the day "Bad luck perhaps" Maybe. What if it happens more than once? Do you ever feel like the market is out to get you? Well guess what, in this Zero Sum game it absolutely is.
Covering the day-to-day mechanics of the FX market and the unsavoury dealings going on, Beat the Forex Dealer offers traders the market-proven trading techniques needed to side-step dealer traps and develop winning trading methods. Learn from an industry insider the truth behind dirty dealer practices including: stop-hunting, price shading, trading against clients and "no dealing desk"realities.
Detailing the dealer-inspired trading techniques developed by MIGFX Inc, consistently ranked among the world's leading currency trading firms, the book helps turn average traders into winning traders; and in a market with a 90% loss rate winning traders are in fact quite rare! More than just a simple manual, Beat the Forex Dealer brings to life the excitement of the FX market by delivering insights into some of the greatest trading triumphs and highlighting legendary disasters; all written in an easy to read style. By stripping away the theory and getting down to the core of trading, you too will find yourself on the way to beating the forex dealer!
About the Author
One of the pioneers in foreign-exchange trading, Agustin Silvani developed one of the first retail-oriented currency programs and currently leads the team of professionals at MIGFX Inc, consistently rated among the top-ten currency traders as ranked by Barron's, Futures, and Currency Trader Magazine. Mr Silvani's experience in FX ranges from the interbank to the retail sector, helping manage portfolios ranging from $1 million to more than $10 billion in size, and is a regular contributor to the financial press.Beat the Forex Dealer: An insider's look into trading today's foreign exchange market (Wiley Trading) Click here to read amazon customer reviews and rating
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